Berkshire's Alphabet Stake Hits $24.2 Billion Amid Ongoing Investment Strategy
Warren Buffett and Greg Abel's Berkshire Hathaway has significantly increased its stake in Alphabet (GOOG -0.55%) (GOOGL -0.41%), making it their fifth-largest holding with a value of over $24.2 billion.
The investment strategy under CEO Greg Abel remains consistent with the company's past approach, but one notable difference is that Berkshire has sold its Amazon shares, leaving Alphabet as its most significant AI player.
Alphabet checks off all three boxes required by Buffett: heavy cash flow, predictability, and a competitive moat. The company's Google Search dominates the market with over 91% share, generating $81.6 billion in advertising revenue last quarter.
The recent investment of $10 billion into Alphabet is one of Berkshire's largest deals in years, demonstrating Abel's commitment to expanding the company's stake in the tech giant.